Houses Are Still Selling
As regular readers know, I’m really not a fan of the LVR (Loan Value Restrictions), in fact I would go so far as to say it’s a ridiculous tool used in entirely the wrong way. Think using an LVR sledgehammer to crack an Auckland peanut where the market is on fire and prices have been rising rapidly.
The Upper Hutt residential market and indeed any area of New Zealand that is not Auckland or Christchurch is not rising and in fact has seen prices take a hit again over the last 8 months wiping out the slight gains made in 2013. What this means is that rents have increased considerably with the laws of supply and demand coming into play, fewer people buying means more people renting.
So who exactly is this sledgehammer tool benefiting? I would suggest investors and overseas buyer particularly north of the Bombay Hills, certainly not the first time buyers that this was designed to protect. Sorry guys, you’re stuck renting and your rents are going up! How do you feel right now?
The sales figures for the first 5 months of 2014 are not pleasant to look at, 266 homes have sold January-May this year, in 2013 the figure was 371. In fairness 2013 was the best Real Estate year in Upper Hutt since 2007, so maybe not a great comparable, but if we look at 2012, not a bad year, not a great year the figure was 311. Fortunately there are (historically) fewer listings for sale meaning we aren’t in a particularly bad market and, as is always the way, houses are still selling... just in lower numbers.
If you are thinking of selling your home or want more information on the Upper Hutt property market please call me on the numbers below or contact me via email firstname.lastname@example.org alternately fill in your details here on my website.
(04) 212 6787
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